 OSCILLATIONS IN THE WALRASIAN GENERAL EQUILIBRIUM THEORY WITH ENDOGENOUS WEALTH AND HUMAN CAPITAL ACCUMULATIONEcoForum, 2016, vol. 5, issue 1, 41 Abstract: This paper generalizes the dynamic growth model with wealth accumulation and human capital accumulation proposed by Zhang (2013) by making all the parameters as time-dependent parameters. The original model is an extension of the Uzawa-Lucas model to a heterogeneous household economy with multiple ways of human capital accumulation. It synthesizes the basic ideas of the Walrasian general equilibrium theory, Arrow’s learning by producing, Zhang’s learning by consuming (creative learning), the neoclassical growth theory, and the Uzawa-Lucas two-sector model. The behavior of the household is described with an alternative approach to household behavior. The economic system consists of one production sector and one education sector. Households are different in propensities to save, to obtain education and to consume, and in learning abilities. We simulate the model to demonstrate existence of equilibrium points, motion of the dynamic system, and oscillations due to different exogenous shocks. Keywords: wealth; human capital; heterogeneous households; exogenous perturbation; and business oscillations (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:scm:ecofrm:v:5:y:2016:i:1:p:41 Access Statistics for this article EcoForum is currently edited by Association of Educational and Cultural Cooperation Suceava More articles in EcoForum from "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department. Contact information at EDIRC. |
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